Flexible payment solutions, digital marketing and e-commerce have made starting an online business easier than ever. With so many opportunities available, though, where do you begin?
Identifying online business ideas that align with your skills and interests is a strong place to start. By understanding the potential revenue of different opportunities, you can also ensure your income stream aligns with your financial goals.
To help explore how to make money online, we've put together this comprehensive guide for UK merchants. Learn about the most profitable online business ideas, find out how to start a side hustle, and get tips on managing your small business's cash flow.
11 ways to make money online
When exploring how to make money online, UK entrepreneurs have plenty of opportunities to choose from.
To gain inspiration, learn more about potential income, and align your skills with the right role, let’s take a closer look at some profitable options.
1. Launch an online store
The UK’s e-commerce industry is worth over £106 billion and is expected to rise to around £148 billion by 2027. This makes it a lucrative avenue for online entrepreneurs.
Launching an e-commerce shop is ideal if you’re looking to make money from a hobby. From handmade soaps to knitting, you can turn crafts and creative projects into business opportunities.
You no longer need coding experience to start an e-commerce website. Instead, you can use a drag-and-drop online store builder to tailor your shop's features and aesthetic to suit your brand and start selling products quickly.
If you’re thinking about making money online through an e-commerce business, here are some more tips to get started:
Find a unique selling point (USP) to help your brand stand out.
Identify your target audience.
Conduct market research in the form of surveys and use online studies to learn more about your target customer.
Create a clear marketing strategy, using techniques such as search engine optimisation (SEO) and Google AdWords to market your products.
To inspire your online store, take a look at our ideas for things to make and sell.
2. Create a digital product
Digital products are goods in digital format, usually sold to customers as downloadable files.
For merchants looking for low-cost, high-profit business ideas, these products offer an excellent opportunity due to low production costs and the ability to sell to a global audience instantly. Examples of digital products include:
Art prints.
Notebooks.
Calendars and diaries (including academic diaries).
Music and audio.
eBooks.
Online courses.
Selling digital products can be a form of passive income. Once you’ve set up, created the product and determined your pricing strategy, you can generate passive revenue with little to no ongoing maintenance.
For example, if you’re looking for a creative way to make money, you might create a series of art prints to sell as digital downloads.
After uploading the prints, marketing the products, and establishing a payment system, your small business will need limited input to run.
Customers can buy and download the prints without your help, making this a low-maintenance option for how to make money online.
How to sell digital products online
There are various methods of selling digital products online.
Let’s say, for example, that you run an e-commerce business selling soap. When looking into how to make extra money online, you create an online course teaching your target market about natural skincare routines and the benefits of essential oils.
You can sell this course through third-party platforms, like Udemy and Teachable.
With an existing audience, this makes it simpler to market your course. The platform will usually take a percentage of your sale (Udemy takes 50% of a sale made directly through the platform as commission, for example) which will need to be factored into your small business finances.
You could also sell your digital course through your existing online store.
Alongside your course, you also create digital art prints of your soap wrapper design. These can be sold through your website, or via marketplaces. Some of the most popular UK platforms include:
Etsy is a marketplace that specialises in handmade and artisan products, which is ideal for creative UK merchants and customers looking for unique goods.
Amazon is a global e-commerce platform that connects customers to a huge range of products, from eBooks to fashion.
Gumroad is a marketplace for digital-only products, ideal for UK merchants selling online courses, digital design packs and fitness videos.
These platforms will take a percentage of your sales, but they provide easy access to a wider audience and customer base.
3. Online consultancy
If you have extensive knowledge in a specific industry or field, you could make money as an online consultant.
This role involves advising clients remotely on how to improve their business, or a specific area of their business, using your expertise.
You can find a demand for UK consultants in many industries, including:
Marketing
Finance
Management
Law
Retail
Manufacturing
To become a successful online consultant, you’ll need to display competence in your area of expertise. Either a degree or a substantial amount of experience is usually required (and frequently both).
Starting salaries for online consultants are typically upwards of £30,000 and can increase significantly depending on your skill level.
4. Become a content creator
Content creation is one of the most popular online roles in the UK, with 13 million creatives following this career path.
From social media to podcasts, these individuals produce content for different mediums. Many work as self-employed freelancers, too, which is a significant factor in the widespread appeal of the industry.
To learn more about the potential of earning money through online content creation, let’s take a look at some of the roles in closer detail.
Blogging
You can start blogging on your own website or as a freelancer for other blogs, businesses and individual clients.
If you’re unsure which is the best option for you, we’ve put together a quick comparison:
Creating your own blog | Writing blogs for clients |
|---|---|
Revenue sources: Earn money through affiliate marketing, sponsored posts and including adverts on your website. | Revenue sources: Earn money by securing individual blogs and blogging projects from clients (such as brands and marketing agencies). |
Audience dependency: You’ll only earn an income as long as you have an audience. | Audience independence: You’re paid directly by your clients, regardless of the blog’s audience size. |
Time to profit: It can take a long time to start earning significant money. | Quicker earnings: Your income can be more stable, with agreed-upon rates for blogs before you begin offering quicker cash flow. |
Income stability: Your income can fluctuate drastically. | Income stability: Predictable income with pre-agreed rates for each blog or project. |
Creative control: You have full control over what you write about. | Restricted creativity: You’ll need to follow client guidelines on what you write about, word count and writing style. |
If you’re a skilled writer or have an in-depth knowledge of a particular niche, such as travel or crafts, blogging could be one of the best ways to make money online.
Podcasting
Host a podcast alone, with a co-host (or hosts) or with guests. Your platform might discuss a specific topic or area of interest. Some popular podcast topics include:
Personal development.
True crime.
Relationships and dating.
Reviews (such as film, music or book review podcasts).
Sports.
With 5 million podcasts available and over 70 million episodes, though, this is a competitive industry. So, a niche subject that you have experience or knowledge of is more likely to stand out from competitors and attract an audience.
If you don’t have an existing audience to market to, it’s likely to be more successful as an idea for a second income when you begin.
Building a strong online presence takes time and requires social media marketing alongside other forms of promotion, high-quality content, and consistent audience engagement.
Vlogging
Vlogging captures snippets of your life, usually with a video narration. As an income stream, it became popular after the launch of YouTube - one of the most lucrative vlogging platforms - in 2005.
You can earn £2.50 - £4.10 per 1,000 views on YouTube. Popular accounts with a significant number of subscribers earn more, with an average of £6 - £7 per 1,000 views.
On TikTok, creators with more than 10,000 followers or 100,000 views within 30 days can expect to earn £0.015 - £0.03 per 1,000 views.
Partnerships with brands can also generate an income. Globally, the average income generated from a sponsored video on a YouTube channel with 10,000 - 50,000 subscribers is £1,704. Other platforms for launching a vlogging channel include:
Social media platforms - ideal for short-form content and promoting vlogs on other platforms.
Patreon - a members-only platform that requires subscribers to pay to view your content, enabling you to generate an income without needing thousands of subscribers.
Vlogging doesn’t have to be your sole income when looking at how to make money online from home. It’s also a brilliant way to supplement other revenue streams and promote your small business idea.
If you’re a personal trainer, for example, vlogging your workouts and creating fitness-related content will build relationships with your audience, develop brand authority and market your business.
Social Media
There are a few different ways of making money using social media. Let’s take a look at the two main options to learn more; social media influencer and social media manager. Social media influencers
A social media influencer is someone with a significant following on social media platforms, such as Instagram and TikTok, that enables an income.
Usually, you’ll need a specific niche to become a successful influencer online and a following of at least 1,000 people. The more followers you have, the more you can earn.
Establishing a large following on social media lets you tap into various forms of income, including:
Brand partnerships.
Affiliate marketing.
Paid subscriptions to exclusive content.
Merchandise sales.
Ticketed events (such as meet-ups and workshops).
As one of the top 5 career choices, though, becoming a social media influencer is a competitive market and not one that’s easy to break into. Some tips to build a social media following include:
Choose a niche and identify your target audience.
Post regularly.
Create high-quality, engaging content.
Engage with other social media influencers.
Use social media metrics to adjust your content based on the most successful posts.
Social media management
If you’re aspiring to a career in social media, consider becoming a social media manager. This role involves managing social media profiles for clients, including influencers, brands and sports teams.
Social media management is one of the best ways to make money online if you’re skilled at creating content and have previous marketing knowledge.
In London, the average income of a social media manager is between £40,000 and £60,000.
5. Review businesses and products
When exploring how to make money on the side, consider reviews. Businesses will pay for your honest opinion of products and services, making this an easy way to boost your income.
To find paid work, use third-party platforms that connect you with brands, such as:
UserTesting
UserTesting is a popular choice that pays you to review websites. You’ll be paid around £7 per review, though prices will vary depending on the tasks you choose.
Amazon Vine
You can also earn free products by writing reviews. Amazon Vine invites existing reviewers to join its programme. You’ll be sent products from different businesses free of charge in exchange for an insightful review.
Another method of earning money from reviews is to combine this income stream with content creation.
If you cultivate a following for your podcast, for example, you could partner with relevant businesses to review their goods or services for a fee.
6. Carry out surveys
Similarly to being paid for online reviews, you can partner with third parties to conduct surveys.
YouGov
YouGov, for example, pays for public opinion surveys about sports, politics, entertainment and more. These surveys are used to shape government policies and provide publicly available data.
Google Opinion Rewards
Google Opinion Rewards is another reputable option that pays for your opinion of hotels, businesses, and other relevant topics. You’ll be paid in Google Play or PayPal credit.
Other popular websites for paid surveys include:
Swagbucks
SurveySpotter
Valued Opinions
Crowdology
Carrying out surveys won’t generate a high income. You can expect to earn around £200 a year if you’re consistent, though you might also receive gift vouchers and discounts for your opinions.
7. Become a virtual assistant
Wondering how to come up with a business idea to earn a full-time income online? A great option to look into is a role as a virtual assistant (VA).
As a virtual assistant, you’ll provide organisation and administrative support for your clients. Your day-to-day tasks might include:
Responding to email.
Scheduling your clients’ diary.
Ordering goods and services for your client.
Arranging transport.
Start by exploring positions on freelance platforms including Fiverr and Upwork, gauging how much you can expect to earn and the breadth of tasks you’ll be required to do. You can then use these sites to apply for virtual assistant positions.
You can also create a professional digital presence to advertise your virtual assistant services. A website and LinkedIn profile, for example, enable potential clients to reach out to you.
The average hourly rate for a virtual assistant in the UK is £29.77, which is significantly higher than median hourly earnings across the country. Once you gain experience, you can increase your rates according to your skill level and financial goals.
If you’re looking to earn more as a virtual assistant, try specialising in a certain area. This could include:
Working in a certain industry.
Offering specialist skills (like social media expertise or accounting services).
8. Make money online using AI
Artificial intelligence (AI) has created various new business opportunities for new and existing merchants. You don’t need to invest in cutting-edge AI to start earning an income either, with plenty of low-investment business ideas available.
AI is most effective when used to enhance your existing expertise. Instead of venturing into a completely new field, leverage AI to improve your current skills, streamline your processes, and expand your range of services.
To learn more, we’ve taken a look at a few of the ways you can use AI to earn money:
AI-assisted code development
AI can save time and improve accuracy when writing code for software. Rather than drafting repetitive lines, you can direct AI software to write the code for you, creating huge chunks of text in seconds.
If you’re a software developer, this can save time, allowing you to complete projects faster, take on more clients and increase your overall revenue.
AI graphic design
Generate logos, t-shirt designs and leaflets using AI software like DALL-E by Open AI and Midjourney.
These tools are ideal for providing design inspiration and creating drafts of your final product. You can then customise the artwork to suit the purpose or client.
Whether you’re freelancing or running an online design business, adopting AI graphic design tools can improve production speed and allow you to take on more paid projects.
AI video editing
If you have a talent for videography but don’t enjoy the editing process, AI could help.
Tools such as Animoto and PictoryAI can complete editing tasks for you, making it easier to tidy up your footage quickly for efficient post-production.
For example, AI video editing is a useful tool for wedding videographers. After you’ve completed filming, use AI to instantly colour correct and enhance audio, ensuring consistency and quality.
This helps with faster project completion, giving you more time to focus efforts on client acquisition and securing your next project.
Always check AI-edited work
While AI can be a powerful tool for streamlining operations and increasing income, it isn’t perfect.
If you use AI-powered tools, always thoroughly check your work before sending it to the client to ensure it meets your standards. It’s also best practice to notify your clients that you use AI before they commission you.
9. Try Affiliate marketing
Affiliate marketing generates a passive income by promoting another business’s products or services using a link.
The basic model of affiliate marketing is simple:
You partner with a business.
You share a link to the business’s products or services.
Every time a user clicks on the link or uses the link to make a purchase, you earn a commission.
To boost the reliability of your affiliate marketing income, work with a reputable third party, like Amazon Associates.
How much you earn from becoming an affiliate depends on your audience. We recommend trying affiliate marketing if you already have a significant following on your social media account, podcast, or website.
When starting affiliate marketing, you can expect to earn around £636 a month with an existing audience. This can increase, though, with some business and marketing experts recording earnings from £6,000 to £76,000 a month.
10. Become an Airbnb host
Do you have a spare room or an empty flat? Make money from home as an Airbnb host.
The average price per night for an Airbnb varies depending on your location. In Manchester, for example, the average price per night is £134, while in London it’s £181 and in Edinburgh it’s £196.
When exploring this method of making money online, if you already have a space to rent, start-up costs are relatively low. Your expenses can include:
Host liability insurance.
New bedding and decor.
Toiletries for guests (if included in your listing).
A fee for a cleaner.
Utility bills.
Airbnb will also take a commission for each booking you secure. This is usually 3%, with guests paying a further 14% service fee that goes directly to Airbnb.
11. Sell second-hand clothes online
By 2027, it’s expected that the second-hand clothing market will reach a global worth of £2.7 billion. With an increase in the number of young people opting for pre-loved and vintage items, this is a flourishing market to enter.
Selling second-hand clothes online is an easy business to start, too. This is partly due to UK marketplaces that enable intuitive selling and easy communication between you and your customers, including:
Depop - they take a 10% commission plus payment processing fees.
Vinted - there are no seller fees.
Vestiaire Collective - some items are fee-free while others come with a 10% fee plus payment processing fees.
Start selling your old clothes to earn extra money online. You can also create a small business by finding pre-loved items at charity shops and selling them at a profit.
How easy is it to make money online?
The different ways to make money online come with varying levels of ease and difficulty.
Opportunities to start a side hustle and make a little extra money - such as through surveys or review platforms - are easily accessible if you don’t need to generate a significant income.
If you have marketable skills and industry experience, you’ll also find it easier to start a freelance business.
There are challenges involved when exploring how to make money online, though:
Identifying your most lucrative income stream.
Learning new skills.
Understanding marketing.
Avoiding online scams.
In the UK, the average salary for online jobs is between £21,000 to £42,500 per annum (p/a). The variety of online opportunities available, though, creates significant fluctuations in earning potential.
Best practices for maximising online income
Whether you’re writing your first business plan or starting a side hustle, following best practices increases your chances of success. To guide your next steps, we’ve put together some key tips regarding:
How to organise your finances.
Legal and tax implications.
Diversification of income streams.
Time management and productivity.
How to spot online scams.
Organise your finances
After exploring ways to make money online, it’s important to understand the financial aspects of business opportunities. Not sure where to start? Let’s take a look.
Understand your expenses
Knowing your small business expenses makes it easier to manage your working capital. This includes fixed costs and variable costs.
Fixed costs: these expenses remain the same regardless of your revenue.
Variable costs: these expenses fluctuate as your revenue changes.
For example, if you decide that the best way to make money online is to open an online store selling handmade cards, your expenses could include:
Fixed costs | Variable costs |
|---|---|
Domain registration. | The materials needed to make your cards. |
Your monthly website hosting subscription. | Packing and shipping supplies. |
Insurance costs. | Delivery costs. |
Loan repayments. | Card transaction fees. |
Marketing and advertising. |
Outline your fixed and variable costs to start creating a small business budget.
Track your cash flow
Once you understand your expenses, you can better manage your cash flow. This is the money that moves in and out of your business, including your income and expenses.
Tracking your net cash flow creates a complete overview of your expenses compared to your revenue, ensuring you can meet your financial obligations and make informed business decisions.
To take control of your online business finances, we recommend reading our guide on how to improve cash flow.
Separate your business and personal finances
Make money management simpler by separating business and personal finances.
Keep your personal and business finances separate to easily track your business’s income and expenses.
This separation allows you to share your cash flow details with your small business bookkeeper without differentiating between personal and business transactions. It also simplifies financial management and helps maintain accurate tax records.
Legal and tax implications
Once you start making over £1,000 in a tax year, you’ll need to register your business.
In most cases, you’ll need to register as self-employed with HMRC (unless you register as a limited company or partnership). You’ll also need to complete a Self-Assessment tax return every year, even if your online earnings don’t exceed the personal allowance threshold.
These obligations apply to all the ways to make money online we’ve mentioned, including carrying out surveys and affiliate marketing.
Take a look at our guide on how to register a business to learn more.
To meet legal and tax obligations, set up a record-keeping system. This will include keeping digital records of your income and expenses.
If HMRC conducts an audit on your revenue, they’ll ask to see your records, making it vital your documentation is correctly stored and ready to view. For self-employed merchants, HMRC requires you to keep all financial records from the last 5 years.
Diversification of income streams
When it comes to how to make money online, you don’t need to restrict yourself to one income stream.
By diversifying your revenue and expanding your operations to increase revenue from different sources, you enhance your financial stability.
For example, if you’re earning a passive income by selling an education eBook, you could diversify your income by uploading additional content to Patreon.
Customers who want to supplement the eBook with extra information can pay a membership fee for exclusive content.
Time management and productivity
When learning how to make extra money online, excellent time management can increase your earning potential, reduce stress and boost productivity.
Some tips to improve your time management include:
Prioritise your tasks based on importance - such as upcoming deadlines - and enjoyment - doing the tasks you’re least looking forward to first.
Set work and rest hours to create a work-life balance and improve productivity.
Avoid multitasking when earning money online.
Use time-tracking apps to monitor how you’re spending your time and how you can optimise for efficiency.
Reduce distractions to enhance your focus, such as turning off notifications on your phone or working in a cafe if you struggle to switch off from tasks at home.
Your time management strategies must suit your working style. As you begin earning money online, you’ll better understand how you work and the tips you need to follow for better focus and enhanced productivity.
Spot online scams
There are plenty of excellent opportunities available when looking at how to make extra money online, from setting up your own business to carrying out surveys for cash.
It’s important, though, that you remain vigilant against scams.
To separate legitimate money-making opportunities from scams:
Avoid offers that seem too good to be true (such as review websites claiming to pay exceptionally high rates for minimal work).
Never work with a third party that asks for an investment.
Check reviews for the third party or client you’re working with.
Don’t click on links in unsolicited emails.
If you’re providing goods or services online, you can also use contracts to protect yourself against scams.
For example, if you start a business as a virtual assistant, create a contract to be agreed upon between you and your clients.
This will outline key obligations, including the requirement of the client to pay you the amount agreed upon in a specified timeframe. Add a stipulation that if the fee isn’t paid, statutory interest will be applied at the government-approved rate of 8%.
If a client is hesitant or refuses to sign the contract, it could be a scam.
Disclaimer: The contents of this page are intended for informational purposes only and should not be construed as professional advice. For matters requiring legal or financial expertise, it’s recommended to seek guidance from qualified professionals.
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